Is Business School Worth It?

Business school students decide to pursue their degrees for a variety of reasons—but a common thread is a desire to invest in themselves to accelerate and elevate their careers.

Business leaders aren’t born—they’re made and molded over the course of their professional journeys. For many
of today’s most innovative and influential leadership talent, a key step on their journey was to go to business school.

Whether you’re motivated to level up on your current career path, make a significant career change, or launch your career from the best possible position, investing in a graduate business degree offers tremendous value: it equips you with the in-demand skills, credibility, network support, and career opportunities necessary to have long-term success in an increasingly dynamic global economy.

The top three specific motivations business school candidates cite are to increase the job opportunities available to them (74%), increase their salary potential (72%), and develop their general business knowledge, skills, and abilities (71%). A majority of candidates are also motivated to accelerate their career path (67%), develop their leadership skills (62%), gain professional credibility or credentials (58%), and allow them to change career paths (51%).

Emerging from business school with a degree in hand —and more importantly, valuable experiences—allows graduates to go on to realize high levels of career satisfaction. Among alumni, most agree that their current job makes use of the skills they gained in business school, is related to their desired career path, has opportunity for upward mobility, and is work they find personally meaningful.

Most business school graduates see an immediate professional payoff for their degree, as well as sustained professional growth over time.

Business master’s and MBA graduates have widely applicable skillsets and are highly sought after by leading employers across industries. Every year, a wide pool of organizations competes to hire business school graduates for highly desirable leadership or leadership track roles.

According to MBA CSEA, 87 percent of last year’s full-time MBA graduates received job offers within three months of graduation. Most, in fact, had a job offer before graduating (73%).

Activities facilitated through business schools are the primary source of most graduates’ job acceptances. Overall, 68 percent of job acceptances by last year’s class came via school-facilitated activities, including converting an internship into a full-time job offer (26%), interviews secured through the school (15%), job postings on school career systems (9%), and activities supported by the school career center (6%).

Last year, GMAC’s annual survey of hiring professionals found that the majority of employers who recruited on business school campuses agreed that business school graduates tend to have a fast-track to upper-level positions in their organizations, and that leaders in their organizations tend to hold a graduate business degree.

Why so much confidence in business school graduates? The top reasons recruiters cited included that they are strategic thinkers, have strong communication skills, and have a versatile skill set. These skills—applicable to just about any business leadership role—are the hallmarks of a generalist graduate business education, proven over decades and continually updated to stay on top of the rapidly evolving business landscape.

Overall, 9 in 10 graduates agree that their graduate business education increased their employability (87%), and 7 in 10 agree their graduate business education provided them opportunities for quicker career advancement (68%). Of graduates who entered business school from entry-level roles, 3 in 4 advanced at least one career level within two years of graduating (75%).

The average business master’s or MBA graduate earns significantly more than they would without their degree—and sees substantially higher earnings over the course of their careers.

Among employers who recruit on business school campuses, the median starting salary offered to MBA graduates last year was US$115,000—notably higher than what the same employers planned to pay for direct-from- industry hires ($95,000). According to MBA CSEA, last year’s mean starting salary for MBA graduates was US$124,000, and according to the Executive MBA Council the average salary and bonus package of Executive MBA graduates was US$193,000.

Median salaries for business master’s graduate new hires— including US$85,000 for Master of Business Analytics, US$85,000 for Master of Finance, and US$75,000 for Master in Management—also came out ahead of median salaries for newly minted bachelor’s graduates (US$65,000).

It makes sense, then, that 70 percent of global employers agree that employees with a graduate business school education tend to earn more than others in their organizations. This is especially true in the consulting (81%), healthcare (74%), and products/services (72%) industries.

Across the entire sample of graduates from the last 10-plus years, the average percentage increase in salary was 42 percent. Nearly 8 in 10 alumni agree that their graduate business education increased their earning power (77%).

This is often referred to as the business school salary premium, and over the course of your career the difference between what you make with your graduate business degree versus what you would have made without it adds up to a life-changing amount. According to analysis from the 2021 Corporate Recruiters Survey Report, an MBA graduate can expect to earn US$3 million more than someone with only a bachelor’s degree.

So, when all is said and done, do business school graduates feel their investment of time, energy, and money was worth it?

The data, and the personal stories of graduates, clearly demonstrate that MBA and business master’s degrees are a well-worn path to career advancement and leadership positions across industries, organization types, and continents.

Overall, 94 percent of alumni rate the value of their graduate business education to be good, excellent, or outstanding. What’s more, nearly 9 in 10 report that they’ve had a positive return on investment on their business school degree (87%).

Most telling of all, the vast majority of alumni say their graduate business education improved their lives professionally (84%), personally (72%), and financially (69%).

Whatever your specific business career goal or motivation, investing in the business school experience can help you achieve it. Whether you’re just starting your career or knocking on the door of the highest levels of management, the world’s leading business schools will have a program option that’s a strong fit for your goals, preferences, and level of experience.

How would a graduate business degree transform your life and career? There’s only one way to find out.